XAU/USD: Gold Prices Steady Near $2,700. What’s the Outlook in a Trumpian World?

Donald Trump is about to take the oath of office as the 47th US President. He’s set out to do big things for the US economy.

🧈 Gold Prices Gravitate Toward $2,700

• Gold prices XAUUSD were steady Monday morning, gyrating around $2,700 per ounce as Trump was getting ready to be called up to the podium. With the US now enjoying a day off (stocks are closed) in honor of Martin Luther King, Jr., the world is waiting to welcome America’s 47th President, Donald Trump.
• Trump’s inauguration day today is likely to stir gold prices, especially when the new President lays out the outlook for the US in his inauguration speech.

🎤 Trump to Hold Market-Moving Speech

• It’s not exactly clear what Trump will say but analysts are speculating that he might bring up tariffs and tax cuts as two of his main pillars for boosting the US economy. A softer tone on these key points might assuage investors’ fears of inflation and support the bullish narrative for gold.
• And vice versa — a harsher address on slapping 20% tariffs on imports might rekindle price growth worries and send bullion prices lower.

🕊️ Hamas Follows Ceasefire Agreement

• On a separate note, war tensions eased on Sunday when the ceasefire between Israel and Gaza was confirmed but not without some nail-biting uncertainty beforehand. Hamas freed three hostages with a few hours of delay in exchange for 90 prisoners released from Israel.
• Gold is generally regarded as a hedge against geopolitical risks and the cooldown in the Middle East conflict knocked demand for the precious metal.